the importance of quality in the consolidation of textile firms in minho

i

THE IMPORTANCE OF QUALITY IN THE

CONSOLIDATION OF TEXTILE FIRMS IN MINHO

Sonia De Oliveira

Doutor Gilberto Santos

Doutor Baptista da Costa

Dissertation submitted to the Instituto Politecnico do Cavado in partial fulfillment of the

requirements for the degree of masters of science

This version does not include feedback and suggestions made by the supervising committee

March, 2013

iii

THE IMPORTANCE OF QUALITY IN THE

CONSOLIDATION OF TEXTILE FIRMS IN MINHO

Sonia De Oliveira

Doutor Gilberto Santos

Doutor Baptista da Costa

March, 2013

iv

THE IMPORTANCE OF QUALITY IN THE CONSOLIDATION OF TEXTILE FIRMS

IN MINHO

ABSTRACT

The textile industry has a long tradition in Portugal and it is one of the most important sectors, despite

the current economic crisis. It has always assumed a prominent role in terms of employment and a

relevant position within the Portuguese economy. (Vasconcelos, 2006)

The lack of quality and the lower prices that other countries offer causes the loss of clients. Quality

is a main tool to survive nowadays in the textile sector, as described in the Visão magazine (2012)

To undertake our analysis, we made use of an existing database where 55 firms belonged to the

textile industry, namely to the manufacturing sector. A new survey was created based on the original

survey and was sent to 5 firms. Besides the survey, we also sent a few questions to the firms in order

to retract more information about the actually situation in our country, concerning the textile industry.

Several tables, graphs and pie charts were made to help shed light on our findings.

This research was conducted in order to determine the importance of quality in the consolidation of

textile firms in the north of Portugal.

Most firms in our sample feel that quality improvement, business benefits, mobilizing employees’

knowledge and business image were important and that competition is very intense and is mainly by

price and not by differentiation of product or service. The quality program has contributed to improve

their competitive position and the improvement of their overall performance.

The majority of the firms in our sample undertake TQM measures for quality purposes to meet

customer expectations and prevent errors.

Of all firms surveyed, the quality is certainly very important for its survival.

Keywords: quality, portuguese textile industry, Quality Management System, Minho

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A IMPORTÂNCIA DA QUALIDADE NA CONSOLIDAÇÃO DAS EMPRESAS

TÊXTEIS DO MINHO

RESUMO

A indústria têxtil tem uma longa tradição em Portugal e é um dos setores mais importantes, apesar

da crise económica atual. Sempre assumiu um papel de destaque em termos de emprego e de uma

posição relevante na economia Portuguesa. (Vasconcelos, 2006)

A falta de qualidade e os preços mais baixos que outros países oferecem provocaram a perda de

clientes. Atualmente, a qualidade é a principal ferramenta para sobreviver no setor têxtil (Visão Jan

26th 2012).

Para efetuar a nossa análise, utilizamos uma base de dados existente, onde 55 empresas

pertenciam à indústria têxtil, designadamente ao sector industrial. Tendo em conta a base de dados

existente, foi criado um novo inquérito e enviada para 5 empresas. Para além do inquérito, foram

igualmente enviado algumas perguntas, a fim de recolher mais informações sobre a situação atual

da indústria têxtil em Portugal. Várias tabelas e gráficos foram construídos a partir dos resultados

obtidos de forma a facilitar a sua leitura.

Esta pesquisa foi realizada para determinar a importância da qualidade na consolidação das

empresas têxteis no norte de Portugal.

A maioria das empresas da nossa amostra sente que a melhoria da qualidade, as vantagens

comerciais, a mobilização dos conhecimentos dos funcionários e imagem da empresa foram

importantes e que a concorrência é muito intensa e é principalmente pelo preço e não pela

diferenciação do produto ou serviço. O programa de qualidade tem contribuído para melhorar a sua

posição competitiva e contribui para a melhoria do seu desempenho global.

A maioria das empresas da nossa amostra aplica os princípios TQM como o objetivo de obter

qualidade satisfazendo as expectativas dos clientes, prevenir os erros e diminuir os custos.

Para todas as empresas entrevistadas, a qualidade é, certamente, muito importante para a sua

sobrevivência.

Palavras-Chave: qualidade, industria têxtil portuguesa, Sistema de Gestão da Qualidade, Minho

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ACKNOWLEDGMENTS Throughout the development of this project, I would like to thank some people that directly or

indirectly helped me in my daily work.

I would like to thank my co-supervisor DoctorBaptistadaCostaandIwouldalsoliketothankmy

supervisor Doctor Gilberto Santos for all the support, availability and guidance throughout this

project.

I would also like to thank my sister for all her help and patience and my husband for all his support,

understanding and encouragement.

Finally I would like to thank the firms for their participation to answer the questionnaire and

interviewswhichcontributedtotheenrichmentofthisproject.

Thankyou

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LIST OF ACRONYMS ATP - Associação Têxtil e Vestuário de Portugal

TQM – Total Quality Management

QMS - Quality Management System

R & D – Research and Development

ISO - International Organization for Standardization

QM - Quality Management

UK – United Kingdom

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INDEX Abstract................................................................................................................................... iv

Resumo................................................................................................................................... v

Acknowledgments ...................................................................................................….…........ vi

List of acronyms..................................................................................................................... vii

Índex..................................................................................................................................... viii

List of illustrations................................................................................................................... ix

List of tables............................................................................................................................ x

1.Introduction............................................................................................................................1

1.1.Struture...............................................................................................................................2

2.Literature review ................................................................................................................... 3

3- Methodology

3.1 Methods…………………………………………………………………………………………….14

3.1.1 Data from the Baptista da Costa Study..................................................................14

3.1.2 Data Collection.......................................................................................................15

3.1.3 Analysis of the results.......................................................................................16

4- Results

4.1. Results from questionnaire...........................................................................................18

4.2. Results from Interviews...............................................................................................31

5- Discussion...........................................................................................................................34

5.1. Strengths..................................................................................................................35

5.2. Limitations.................................................................................................................35

6- Concluding remarks...............................................................................................................36

References ..................................................................................................... ………….……....37

Appendixes..................................................................................................... ………….……....41

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LIST OF ILLUSTRATIONS Figure 1 – Continual Improvements of the QMS

Figure 2 - Reasons to implement certification – important/extremely important

Figure 3 - Reasons to implement certification – not important/with some importance

Figure 4 - Benefits of Certification – Substantial benefits/very substantial benefits

Figure 5 – Benefits of Certification – no benefits/few benefits

Figure 6 - Length of time to implement the ISO 9000 Certification

Figure 7 – Competition - Agree

Figure 8 – Competition – strongly disagree/disagree

Figure 9 - Implication for customers

Figure 10 - Benchmarking

Figure 11 - Empowerment

Figure 12 - Zero defects mentality

Figure 13 - Incoming of the Quality Management System, regarding the way Quality program has

impacted and influenced the results of the firm – neither agrees nor disagrees/agree

Figure 14 – Firms did not feel that they were better off without the quality program in terms of

improving the firm’s results

Figure 15 - Culture

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LIST OF TABLES Table 1- Imports and Exports in the textile Industry in Portugal

Table 2 - Main sections and main topics included the original survey

Table 3 - Main sections and topics of the reformulated survey

Table 4 - Reasons to implement certification

Table 5- Benefits of Certification

Table 6 - Competition

Table 7 - Empowerment

Table 8 - Zero defects mentality

Table 9 - Incoming of the Quality Management System, regarding the way Quality program has

impacted and influenced the results of the firm.

Table 10 - Culture

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1. INTRODUCTION The textile industry has a long tradition in Portugal. Despite the current economic crisis, it is still one

of the most important industrial sectors of Portugal. It has always assumed a prominent role in terms

of employment and a relevant position within the Portuguese economy. It is a mature but fragmented

sector subject to periodic mismatches between supply and demand; its performance is strongly

conditioned by fluctuations in the global economic activity (Vasconcelos, 2006).

As stated by Vasconcelos, the textile industry in Portugal has registered dynamic and competitive

behaviors in certain sub-sectors and firms. The geographical and cultural proximity to European

market is a positive aspect and they must take advantage of it.

The Portuguese textile industry has revealed to be dynamic and adventurous in the following sectors:

wool, technical textiles, meshes and clothes making. In the last mentioned sector, Portugal is losing

market share in favor of some countries of the European Union but especially in relation to the cheap

labor countries.

There has been a trend of relocation of production to countries that have benefits in terms of

production costs, leading firms to settle in these countries their own production units or outsource

manufacturing.

The global textile trade liberalization, with the consolidation of the position of

Asian countries in the European market, has aggravated the difficulties that this sector has

experienced in the last years, affecting not only Portugal but the entire European Textile Industry

sector. The future of this sector bets on factors such as R & D, innovation, design, striving for

excellence, quality, distribution, logistics and also the internationalization of its products, especially

those containing high levels of differentiation, as mentioned by Célia (2009).

From interviews with Portuguese business owners, from the textile sector, I found that with quality

product but with higher prices, clients seek for better conditions in other countries. That is what is

happening in the textile sector worldwide. Some countries are losing their clients because of the lack

of quality and others because of the lower prices that other countries offer. Clients seek for low prices

but also quality. Quality is a main tool to survive nowadays in the textile sector. Clients also look for

a partner that they can delegate responsibility, and that doesn’t happen in the Far East, it is a

characteristic that defines the Portuguese people.

Portugal is also known as a country that sells with credit. Clients look for that type of negotiation and

that does not happen neither in Asian countries or Far East countries. Clients also like the loyalty felt

by our firms because they like to create roots.

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Quality and the QMS are two important tools that if they are used properly; they are two great

weapons that we can use in our defense.

The QMS well implemented is an instrument that can manage everything in a firm (human resources,

behaviors …), involving everybody with the firm, with the client and will the society.

Workers are an important link in the firm´s performance and if all perform their functions properly,

this will be reflected throughout the firm.

Portuguese firms don’t enter in price wars, they prefer to offer their clients excellent products, give

their workers the constant adequate training and have the ability and knowledge to overcome crisis.

Besides quality, Portuguese firms also bet on innovation and accurate deliveries, as they have the

knowhow, as stated in Visão magazine (January 2012).

This research was conducted in order to determine the importance of quality in

the consolidation of textile firms in the north of Portugal.

The main objective of this dissertation to work a database that refers to the textile sector in Minho

region. It will allow us to evaluate the impact that quality can cause on the textile firms from Minho,

why some survived and others didn’t survive.

There are some questions that arise, such as how quality is a survival factor for textile firms from

Minho, how the lack of a QMS contributed to the closure of some firms and how implementation of

QMS can enhance in addition to competitiveness, innovation and the firm’s survival.

With this study we expect results that show the impact of quality in textile firms from Minho and the

contribution to its survival, or its closure; how quality boosts innovation and competitiveness in the

textile sector and the importance of quality in the consolidation of textile firms of Minho.

1.1. Structure

This dissertation is divided into 5 chapters.

In the first chapter, we present the framework around quality and the motivating factors. We also

have the objectives, research questions and how the dissertation is organized.

In the second chapter, we review the relevant literature on quality and quality implementation

strategies in the Portuguese textile industry.

In the third chapter we describe our methodology.

The fourth chapter provides an overview of the results of our analysis.

The fifth chapter provides a summary of our results and concluding remarks.

After the fifth chapter, the annexes are presented following to the references.

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2. LITERATURE REVIEW

When it comes to talking about quality it is important to know the history of Quality Management,

from its emergence in the late 19th century and early 20th century until the present day as stated by

Fisher (2006).

Activities elapsed in Japan are highlighted immediately following the end of World War II and the

subsequent developments in the world.

In the late 13th century, the medieval craftsmen began to organize themselves into societies that

developed formal procedures for product quality and service, which were applied rigorously. The

products were regularly inspected and high quality products were labeled with special symbols. This

advance was applied in the industry until the Industrial Revolution in the early 19th century.

After the Industrial Revolution, the mass production led to a factory system, where craftsmen became

factory workers and the work was grouped into specialized tasks. A final inspection guaranteed that

the products exported to clients had a reasonable quality.

This model was expanded to the United States in the late 19th century, with the system manager Mr.

Frederick Winston Taylor (1856-1915), whose goal was to improve productivity significantly.

Quality Management has been practiced by Bata companies from the WW1, from the 20s to the 40s,

well before the quality gurus have thought about this subject.

The birth of modern statistical quality control is assigned to the work of Walter Shewhart at Western

Electric.

At the turn of the century, Western Electric trained its workers to be inspectors to ensure the

specifications and standards of quality, to avoid sending non conforming products to the customer.

In 1920, Dr.Walter Shewhart at Western Electric took the quality of products to a next level – he

employed statisticians to control processes to minimize defective output.

When Sr.Shewhart joined the Engineering Department of Inspections in Hawthorn in 1918, the

industrial quality was limited to inspection of the final product, removing defective products.

The American Society for Quality, according to Dodge, started in 1924, with the beginning of

statistical quality control. His work in cooperation with engineers was pressed to save money and

make the methods of quality control simple and easy to apply.

This led to the development and use of scientific sampling plans for inspection and further led to the

knowledge of the risks of the customer and the producer. These methods were widely used during

the Second World War in the manufacture of weapons.

The evolution of Japanese after 1950 is well known. The Quality Circles are a basic set of tools, that

include a check sheet, a control chart, a histogram, an Ishikawa diagram and dispersion and the

most notorious, the work of Genichi Taguchi in the parameters project.

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Taguchi developed a framework for quality improvement.

He was working on ideas since the 1950s, but they were first introduced in the U.S.A. in 1980, when

he visited Bell Labs in New Jersey.

It was designed a low-cost approach to reduce variation in products and processes, design and

development of new products / processes or improve the quality of existing ones.

To speak about Quality Management, we have to explain the definition of management. The

management experience is a critical requirement for anyone looking to create a workable system of

management.

A remarkable exception is Homer Sarasohn who created a system - principles, structures and

implementation plans - which successfully put into practice, as evidenced by the success of the

companies he founded. The concept of Six Sigma was initiated in 1987 with Motorola, in response

to a need for a business press and appears as a commercial package in the mid 90s in the United

States. However, Six Sigma is not a successor to TQM.

Total Quality Management is a system used to manage a company where the principles of quality

are well understood and accepted, but the structures and methods of implementation may vary over

time.

Consultants Quality Management bloomed, companies began to define quality in relation to the

needs of clients and customers began to be a step on the way to success.

The increased use of the ISO standard 9000 played an important role in forcing suppliers to improve

their processes, documented its procedures and improved their measurement capabilities.

In the late 80 Quality Awards were created.

In the 90s it was no longer sufficient to meet the needs of customers. It was necessary to deliver

superior value to customers.

The use of standards such as ISO 9000 increased and forced suppliers to improved their processes,

to document their practices and to improve their measurement capability.

Productive textiles activities have evolved over time following the needs felt by humans. As stated

by Vasconcelos (2006), the textile industry in Portugal has been a great international representative

of the Portuguese industry because of its importance in terms of number of jobs and its weight in the

national economy.

Currently, this industry has undergone a restructuring and conversion phase, due to the breaking of

barriers and due to the increasing of international trade competition from which results in the

elimination of many jobs and business failure.

According to the ATP database, exports and imports in the textile sector have been rising from 2005

to 2007, and from 2007 to 2011 exports and imports have been declining, as can be seen on the

below table.

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Table 1 - Imports and Exports in the textile Industry in Portugal

This table provides an understanding of the importance of the textile industry in the Portuguese

economy.

Socially devalued, the industry has, however, recorded in Portugal competitive and dynamic

behaviors in certain sub-sectors and companies, enjoying some of its strengths such as the

geographical and cultural proximity to the European market, the know-how, the moderate wage costs

compared to European levels, the increasing of international recognition of products, the

achievement of high investments in technological modernization, the progressive development of a

culture of quality and quick response.

Vasconcelos (2006) stated that the competitiveness of the sector is closely related to efficiency

observed in each link of the supply chain and the quality of the products is related to the quality

obtained at each step. Currently the Portuguese companies bet on quality to ensure that they do not

lose their customers, as happened some years ago.

Portuguese textile companies bet on quality, innovation and accurate deliveries. As they have the

knowhow, quality is a main gain, as quoted on magazine Visão (2012).

Portugal is a well positioned country in Europe. Some clients are looking for countries that have

cheap manpower but most of the times they return as they don’t find the desired quality and they are

also looking for a partner that they can delegate responsibility, and that doesn’t happen in the far

East.

Some of the clients that went to the far East came back because they also encounter with a decrease

of the sales because the clients had no longer a product with quality and wouldn’t pay the high price

to buy an article that was almost certainly made by a six years old child.

2005 2006 2007 2008 2009 2010 2011

Output

(millions €) 6 756 6 756 6 733 6 147 5 687 5 782 5 220

Volume of

business

(millions €)

6 993 6 931 6 980 6 404 5 781 6 361 6 267

Exports

(millions €) 4 118 4 237 4 347 4 086 3 504 3 742 4 056

Imports

(millions €) 2 993 3 296 3 411 3 290 3 041 3 296 3 315

Employment 201 265 186 837 180 335 168 206 157 145 150 929 147 711

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As Portuguese companies are subject to quality audits, this is also a main reason that the clients can

trust us and want to be our partners.

Clients that came back also like the relationship that is established with Portuguese textile

companies, interactive and close.

Manpower quality and responsiveness of our factories are the main reasons that well known brands

have their production in Portugal, also cited on magazine Visão (2012).

Another important issue is the capacity that Portuguese companies have when it comes to

confidentiality. This issue is very important for international brands. The counterfeit market is very

strong in Asian countries and Turkey. Articles are sold to the market before the collection is launched

and they are sold with unbeatable prices.

Portugal is also known as a country that sells with credit. Clients look for that type of negotiation and

that does not happen neither in Asian countries or Far East countries.

Portuguese companies don’t enter in price wars, they prefer to offer their clients excellent products,

give their workers the constant adequate training and have the ability and knowledge to overcome

crisis.

More and more, the textile industry faces lots of changes namely the moving from the developed

countries to the developing countries such as India, Pakistan and China, as mentioned by Middleton,

D. (2010). Textiles markets are becoming highly competitive and the reason they are moving is

because of the manufacturing costs are significantly lower.

As the costs with production are lower, developing countries can sell their goods at lower prices than

the developed countries do. Even if developed countries have quality garments, they will have

difficulties in selling them because of the competition with lower prices.

To survive, developed countries have to change their strategies and bet on quality and cost.

Sometimes it leads to big investments with equipment in order to achieve the desired costs with

production.

United Kingdom is an example of a country that is in a weak position, as their raw material is more

expensive than other foreign countries.

A important tool that is implemented is TQM. It improves product quality while reducing costs.

As all textile companies, UK companies are not an exception, besides attaining distinct

improvements in quality they have to do other things to remain competitive. These companies must

follow all the changes that happen in the market in order to guarantee their spot.

Díaz, De Cerio et al (2010) defends that QM allows all companies to develop towards continuous

improvement.

Japanese companies aroused the curiosity of western companies. Their ideas, management tools

and practices raised interest among all because of the high quality that their products presented.

So, from 1980 to 1990, these tools were spread out to all US and European firms.

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All companies must have in mind their three main stakeholders: customers, suppliers and

employees.

Clients’ satisfaction is very important. To obtain a final product with quality, it is necessary to work

with quality, have good human resources and excellent raw material. Companies must have

strategies to produce high quality products and must have in mind the design of the products, quality

assurance in the processes and the use of external and internal information.

But, as above mentioned, human resource is very important.

In order to survive the rapid downfall, European industry felt the necessity to create efficiently and

effectively strategies in their own processes. In this way, they would be able to respond to large-

scale imports from low labor rate sources of production, as referred by Bergvall-Forsberg et al (2009).

Thanks to the fast development of communications and technology, the distance between countries

has been reduced and orders are now delivered more efficiently.

As low cost labor is found in developing countries, developed countries are taking to them their

technology and knowledge in order to obtain products with quality and at a lower price. To obtain

profitability, textile manufacturers must work hard.

Towers, Neil et al (2010) affirmed that many firms want to achieve lower prices, better quality and

access to new markets in order to shorten product life cycles. The main worry is to maintain low

prices and the same level of quality but with globalization it has become more and more difficult.

Because of all the modifications and different client demands, the textile companies must change

quickly and frequently to satisfy its clients.

Branded clothing and footwear are a result of an alliance between oversea partners. In this way they

guarantee the low costs and the desired quality.

Quality is not just what we see when we look at a product but everything that involves its production

process, such as customer service, on time shipments and supplier’s certification.

It is also present when it comes to improvements of lead times, conformities, reliability of deliveries,

supplier’s effectiveness to respond to clients’ requests and complaints. What can sometimes become

to be a barrier are the different cultures that countries have and it influences ways of thinking and of

working. The language can sometimes be a problem too.

China is very important when it comes to the global production of garments in the European Market.

China has a good quality raw materials, yarn, fabric and extensive garment production capability

within the country.

As stated by Chang (2011), firms understand the importance of quality and customer satisfaction as

they are a critical resource for firms’ competitive advantages of the industry life cycle.

Chinese industries are no longer relying on foreign investors, as their own firms are now as

competitive as foreign firms in offering high quality, excellent customer service and have good

reputations of their own.

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When it comes to financial and physical resources, domestic firms are more profitable then foreign

firms but when it comes to fashion trend knowlodge, Chinese industries don’t have advantage at all.

As said by Powell (2010), quality certification is a prerequisite for competing in the market but a firm

must decide if it is economical to achieve and maintain certification in all locations.

When it comes to satisfying clients, quality must be predicted. It must meet customers’ taste, needs

and their requirement degree as mentioned by Slah (2010)

According to Montava (2010), the textile sector is in a new world framework and it has the

globalization influence and also the influence of developing countries. Besides the textile sector we

can also include garment making sector, shoe and toy making. As in other sectors, the textile industry

labor costs have big effect on the price of the final product.

Some changes have happened since China accessed the European and North American consumer

markets. It presents a big threat to all the textile producers. With all these changes and as China is

a big threat, businesses must fight for their place in the market by betting on innovations in

development of new products, versatility, quality and costs.

Besides all the innovations, business companies must not forget the need of management systems.

At this point it is important to characterize the global industrial textile sector under the socio-economic

context, resorting to relevant data to the analysis, as stated by Vasconcelos (2006).

The textile industry is an industry with a lot of tradition and despite the serious crisis affecting it still

is one of the most important industrial sectors in Portugal, assuming as always a prominent role in

terms of employment and a prominent position in the Portuguese economy.

This is a mature sector, fragmented and subject to periodic mismatches between supply and

demand, whose performance is strongly influenced by fluctuations in global economic activity.

Sousa (2009) referred that the global textile trade liberalization, with the consolidation of the position

of Asian countries in the European market, has aggravated the difficulties that this sector has

experienced in recent years, affecting not only Portugal but all the European Textile Industry sector.

The future of this sector bets on factors such as R & D, innovation, design, striving for excellence,

quality, distribution, logistics and also the internationalization of its products, especially those

containing high levels of differentiation.

The textile sector should thus strengthen and bet on intangibles factors of competitiveness, designing

firms in the market and businesses moved towards the elements that contribute the most to add

value to their product, thus becoming more competitive.

The Textile Industry in Portugal is concentrated in three main regions:

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- Mostly the North, where the cotton sector is located (home textiles, woven and knitted cotton-

based, outdoor and indoor clothing, ropes and nets), specifically in Vale do Ave; The Northern Region

is one of the most industrialized areas of Europe, and even very recently the 10th most industrialized;

- Lisbon, manufacturing firms of synthetic fibers;

- Center, firms of the wool sector (yarn, woven and wool knitted based fabrics) and firms making

outwear, mainly in Beira Interior.

According to Vasconcelos (2006), this location is primarily related to tangible factors of production,

i.e., the cost of skilled labor and raw materials, which in his view, eventually became a competitive

advantage for firms of the sector.

In 2006, the number of firms of the Textile Industry in the North, represented approximately 70.6%

of total enterprises in Portugal, while the number of firms in Lisbon and Center, represented only

13.5% and 11.4 %, respectively.

As Frederick (2009) stated, today’s economy is global. The textile industry is no exception. Thanks

to developments in production, communication, transportation and information technology, the global

competition occurs and have allowed countries around the world to enter the playing field. This leads

to an increased competition and makes all firms and companies formulate new strategies in order to

achieve success.

Quality is one of the most important discussions in the textile industry. The customers’ demands and

the decisions made by the retailers have big impact in the production process, as mentioned by

Apeagyei (2012)

Work force is one of the most important factors that helps achieve greater levels of quality.

To attain quality we must have in mind the following: Quality manuals and documents, identifiable

key quality measures, workflow tracking system, quality review meetings, appraisals, career

development initiatives, validated training and internal audit.

In the textile industry, the lack of quality leads to loss of time to discover the error, costs with products

returns, processing complaints and waste. ISO 9000 helps to ensure that products and services are

delivered with an acceptable level of quality.

Benchmarking helps to improve standards and ensure that the retailers remain competitive. The real

challenge to management is to improve quality while reducing the unit cost of items to meet

increasing demands of clothing consumers. This could be achieved through better management and

implementation of quality assurance systems.

In order to guarantee that the articles are made with quality, Towers (2010) stated that the simple

inspections that were made are now substituted by the use of quantitative methods involving the

application of statistical techniques for quality control. These changes happened and evolved rapidly

in the last twenty years. The willing to obtain quality involves a big process, that include standards,

staff training, recording of data and the accuracy and consistency of measuring equipment. Quality

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doesn’t only mean accepting a product but everything that contributes to obtain it. In the below figure

we can see that all the participants are involved in the quality management process.

Figure 1 – Continual Improvements of the QMS

As happening with the clients in Portuguese textile businesses, UK has reduced its manufacturing

capacity and transferred it to Eastern Europe, the African continent and Asia. This way, the profit

margins have been enlarged as the labor and production costs have been lowered significantly.

In UK, quality in the textile industry has evolved and besides betting on quality, speed of response

as well as cost, there are also betting on good management practices. TQM is taking its place in this

industry and the ISO 9000 has gained its importance too.

Zaghouani (2009) affirms that to evaluate the quality of a textile product in which many attributes are

involved, multiple criteria decision support systems should be developed.

European textile and clothing industry is facing a rapid downfall and research within the sector has

been fairly limited, as mentioned by Towers (2010). European textile manufacturers have had to work

hard to sustain profitability and answer to large-scale imports from low labor rate sources of

production.

According to the pdf8, for European industry to survive, further research is needed to support

manufacturers, distributors and retailers in creating strategies for the global textile supply chain to be

managed efficiently and effectively.

Kapuge, Anton Malmadana et al (2007) made a research that one of the objectives was to compare

the quality management practices in companies from Sri Lanka that had TQM implemented and that

didn’t have TQM implemented. It was expected that companies that had TQM implemented would

11

have a high quality strategy and performance. There were also differences between both, related to

the customer focus, process improvements, supplier relations and physical and financial measures.

Ehsan, Abul (2010) defends that to implement ISO 9000 standards, it is necessary the collaboration

of all employees and it also requires a developed documented system. ISO 9000 is a family of

standards for quality management. The ISO maintains it and the accreditation and certification bodies

administrate it. ISO 9000 addresses quality management standards as to what an organization needs

to accomplish. It gives organizations the capability to achieve customer’s requirements, quality

management system and it also supplies guidelines to improve its performance. Implemented in

many companies, in about 150 countries, it is one of the notorious international standards. ISO

standards seek output’s defects, customer’s quality requirements, effectiveness, customer’s

satisfaction, performance improvements and focuses on all key processes.

Textile industry is very complicated and challenging. Its process incurs heavy payments to the

manufactures. In order to lower its costs, improve its input’s quality and increase customer’s

satisfaction, many textile industries have implemented ISO standard. This industry employs lots of

people, directly and indirectly. It proves to form a vast industrial complex and proves to be a big

contributor among manufacturing industries.

Nowadays global competition is among all companies, as it is in textile companies. Textile industries

are suffering many changes so to make a difference it relies on quality, innovated fabrics and

responding customers’ needs. In order to survive the international competition, many companies get

the ISO certification.

The ISO certification helps companies to penetrate in the market. Is helps the textile companies to

improve their process and products’ quality, minimizing the defects and consequently the rework. It

also works as a marketing tool because it shows that the company is well recognized for its quality

and shows their preoccupation.

The aim is to improve service and product quality and it also motivates its workers. The implementing

costs are cheaper than the benefits and many certificated companies even stated that their total

costs decreased.

Okay et al (2010) studied the effective factors, the difficulties encountered and the attainable levels

of the objectives in the certification process, within the Turkey textile Sector, in particular small and

medium sized enterprises. Although some difficulties were found, the certification process was stated

to be successful as the benefits achieved were according to the established objectives. Quality is the

most important element for organizations, since the customers expectation have raised and the

variety of the goods and services have increased.

In 1980’s it was considered as a competitive advantage but nowadays it has become the main

circumstance of survival for all companies.

12

They also conclude that the textile industry is a sector in which employment is high and developments

and changes are very important. These characteristics must be maintained when quality is present

within their services and production.

An important tool that can be used is the certification. Certification involves a process that includes

the effective factors, the difficulties, the benefits and the obtained results.

With certification the firm’s satisfaction and bureaucracy have increased, which show that the

organizations are in a dynamic process towards development. To obtain the certification, some

companies received consulting services but others ran the process with their own employees, as

mentioned by Okay et al (2010).

Vlachos (2000) stated that there are two main reasons that lead companies to want the ISO

certification, to achieve marketing objectives and quality goals. They also state that the certification

is very important for companies that want to work with international markets and become more

competitive. They defend that quality is also used as a tool to find operational problems of the textile

company and contribute for its improvements. As a result, costs were reduced considerably and the

company’s culture changed drastically.Thanks to the Greek textile company studied, other

companies, in particular subcontractors, have grown and showed interest in quality matters. Some

difficulties that were pointed out were the fact that the preparation of the certification process was

exhausting and dull.

Hsu et al (1978) quoted that quality is built on the shop floor, involving all workers. In the textile

industry companies the concern isn’t only the quality itself but also efficiency, reducing waste and

energy, client’s satisfaction and higher production. Three examples of companies are exposed:

- Kanebo is a company that thinks that besides quality, safety is very important and so are

trained employees.

- For Collins & Aikman, quality is important for the company to stay in business. It is also

important the zero defects, decreasing costs, energy and inventory.

- Craftex implemented the quality certification to improve its products’ quality. Costs, setup

time, inventory were decreased and capacity was increased, obtaining efficiency and quality.

According to Matebu (2006), quality is an important weapon considering the competition that exists

in the market, locally and internationally. Quality must involve everyone and it is the foundation of a

continuously improving in the organization.

Nowadays, lots of textile industries in Ethiopia are suffering from quality related problems, such as

low quality, low performance of its products, incompetence, low productivity, customer

dissatisfaction, among others. He also studied the reasons of the loss and low market share in textile

companies. His aim was to propose a suitable achievement model of quality management system.

To evaluate a textile product, we must consider performance, reliability, durability and aesthetics.

According to Sarkar (1998), ISO 9000 quality systems have been developed to satisfy the clients, by

producing a desired product. It is necessary a plan that involves top management. He defends that

13

our world is consistently changing and that we must guarantee our product’s quality. It also demands

that our suppliers must be certificated too. All the process must be documented and must involve all

workers.

Quality is an imperative strategy for companies’ success. In this way, companies can provide their

best service or product, as referred by Fiorentin (2011) .Many companies recognize that they aren’t

ready for the world that surrounds us because it is changing constantly and some aren’t able to

accompany.

According to Miss Strachan, Parkland’s manager, quality is very important as it represents a

fundamental requirement for survival and an entrance in the markets. At Parkland, they believe that

in this way, product quality, cost control and business performance can be achieved. To implement

the quality system ISO 9000, some difficulties were experienced, such as, increased paper work and

the manager’s lack of commitment, as stated by Huang (2002).

But on the other hand, they experienced the positive side, the benefits. Some benefits included:

delivery time reduced; an efficient system; motivated workers; customer satisfaction improved and

loyalty.

3. METHODOLOGY

3.1. Methods 3.1.1. Data from the Baptista da Costa Study

To undertake our analysis, we made use of an existing database which includes firm-reported data

collected through a questionnaire designed by Baptista da Costa (Quality Management Systems

(QMS)). In particular, this database includes survey data from a study that sought to understand the

14

impact of implementing quality management system in firms certified by ISO 9000 in the Minho region

in Portugal.

Table 1 - Main sections and main topics included the original survey

Main Sections Main topics

General Description of the firm

Type; Firm’s Activity; Year of first certification; Number of employees;

Deployment of the quality management system, ISO 9000 certification

Motivations

Benefits

Deployment time

Payback

Practices used before

Barriers

Competition

Deployment level

Factors

Income

Income of the QMS

Impact

Archetype

Culture

The Baptista da Costa study presents the benefits, drawbacks and difficulties of implementing quality

management systems and the importance of quality in the production process. The firms that

participated in this study were from different activity sectors.

These sectors were divided into different types, such as services, manufacturing and both. Within

the 260 firms that participated, 25% were from the textile sector, 15% were from the construction

sector and 13% belong to the metallurgical sector. From the 25% that made up the textile industry,

only 21% belonged to the manufacturing, which represent 55 firms.

15

3.1.2. Data Collection

We examined all the questions included in the Baptista da Costa survey and selected the ones we

believed would be more pertinent to our analysis. We created a new survey with the use of selected

questions from the original survey and designed a new survey, which served as the basis for this

analysis and in order to update the original survey, the reformulated survey was sent to 5 firms.

Besides the survey, we also sent a few questions to the firms in order to retract more information

about the actually situation in our country, concerning the textile industry.

The additional questions included in the revised survey may be found in the appendix but refers the

following questions: the importance of quality in the textile firms in Portugal, the actual situation of

the textile sector, the reasons why some clients are searching new markets and leaving our country.

The questionnaire used simple and clear language.

Once the new survey was completed, we searched for eligible firms in the Minho region in northern

Portugal to administer the survey. The final survey was organized according to Table 2. We obtained

both qualitative and quantitative answers, depending on the type of questions.

Table 2 - Main sections and topics of the reformulated survey

Main Sections Main topics

General Description of the firm

Type; Firm’s activity

Implementation of the quality management system, ISO 9000 certification

Motivations

Benefits

Implementation time

Competition

Factors

Income obtained from the QMSCulture

All firms were initially contacted by email in which we explained the purpose of the study and inquired

about their availability to participate in our study. In total, we contacted five additional firms (A –

Favima, B – Rodrigues e Abreu, C - Impetus, D and E asked for anonymity) that were not included

in the original database.

Firms A, B and C expressed interested to participate in the study so we scheduled a meeting with

each one to administer the survey. Firms D and E did not reply to our first round of emails and were

therefore sent a second email. Two weeks after the first email was sent, firm C contacted us to cancel

the initial interview scheduled but suggested rescheduling the meeting to another day if possible, or

16

alternatively answer the survey by email. At a later date, Firm C confirmed that they would indeed

answer the questionnaire but through email. Firm D eventually replied to our email and explained

they were not able to schedule a meeting but would be happy to answer my survey by email.

At firms A and firm B we interviewed the person responsible for the quality system. During our

meeting, we asked each person questions we believed to be relevant to our analysis and asked them

to fill out the revised survey. Firm E did not reply to my second email; thus, we decided to contact

them by telephone at which point firm E agreed to answer the interview by email. Firm E answered

the interview by email. Once all surveys were completed, we organized all the data and updated the

original database.

3.1.3. Analysis of the results

We combined the data from the original database that consisted of 55 firms and the data we obtained

from the 5 firms we surveyed, and analyzed these as one reformulated database. Several tables,

graphs and pie charts were made to help shed light on our findings.

After gathering all the data and analyzing it, we compared results from all 60 firms and took our

conclusions.

The information that we acquired from the questionnaire was also very important to help take

conclusions and understand the actual situation of the textile industry in Portugal.

To analyze the results, tables, bar graphs and pie charts were used.

Tables are illustrative representations that provide organization and facilitate the interpretation of the

work, clearly and objectively. Tables should be used when it is important to present accurate figures

and trends and when the amount of data is too large, requiring them to be summarized, as mentioned

on site 1.

A bar graph displays data visually and is sometimes called a bar chart or a bar graph. Data displayed

will relate to things like amounts, characteristics, times and frequency etc. A bar graph displays

information in a way that helps us to make generalizations and conclusions quickly and easily. A

typical bar graph will have a label, axis, scales and bars. Bar graphs are ideal for comparing two or

more values, as referred on site 2.

A pie chart is used to show how much something is worth compared to the whole thing. A chart is

usually based on a 100% scale and each slice to the chart is a certain percentage of the whole thing.

The bigger the slice is the more percentage of the whole thing is made up of that part or slice. It can

be used to show how much something is liked compared to other things, because the information

can be easily read and therefore makes it easy to present and analyze data. Each section can be

viewed easily with different sections and colors, as stated on site 3.

17

4. RESULTS 4.1. Results from questionnaire

All firms in our sample were national firms with the exception of one.

The following graphs depict the motivations that led firms to undertake the certification process.

Table 4 - Reasons to implement certification

18

Without any

importance

Not

important

With some

importance Important

Extremely

important

Did not

respond

n % n % n % n % n % n %

Cost reducing

measures

5 8% 3 5% 13 22% 24 40% 11 18% 4 7%

Quality

improvement

0 0% 0 0% 1 2% 15 25% 44 73% 0 0%

Business Benefits 0 0% 0 0% 7 12% 27 45% 25 42% 1 2%

Pressure from

customers

5 8% 13 22% 19 32% 14 23% 7 12% 2 3%

Numerous

certificated

competitors

7 12% 9 15% 22 37% 19 32% 1 2% 2 3%

Benefits achieved

by other certified

firms

2 3% 18 30% 19 32% 17 28% 0 0% 4 7%

Avoid possible

obstacles to

exportation

6 10% 17 28% 9 15% 19 32% 8 13% 1 2%

Mobilizing

employees’

knowledge

1 2% 2 3% 9 15% 29 48% 18 30% 1 2%

Relations with

authorities

9 15% 19 32% 17 28% 11 18% 2 3% 2 3%

Relations with the

community

6 10% 19 32% 18 30% 12 20% 3 5% 2 3%

Business Image 0 0% 0 0% 7 12% 23 38% 29 48% 1 2%


knowledge and business image were important or extremely important factors to implement

certification, as shown on figure 2.

19

Figure 2 - Reasons to implement certification

The below graph, figure 3, demonstrates that benefits obtained by other certified firms, improved

relations with authorities and the community were generally identified as unimportant reasons to

implement the certification process by roughly one-third of the firms in our sample.

Figure 3 - Reasons to implement certification – not important/with some importance

Some of the firms did not respond some questions.

The following graphs represent the benefits of certification.

Table 5- Benefits of Certification

40%48% 45%

38%

73%

30%42%

48%

0%10%20%30%40%50%60%70%80%

Important

Extremelyimportant

30%

32% 32%32%

28%

30%

26%

27%

28%

29%

30%

31%

32%

Benefitsachievedby

othercertifiedcompanies

Relationswithauthorities

Relationswiththecommunity

Notimportant

Withsomeimportance

20

No

benefits

Few

benefits

Moderate

Benefits

Substantial

Benefits

Very

substantial

benefits

Did not

respond

n % n % n % n % n % n %

Reduction of production costs 5 8% 11 18% 28 47% 12 20% 3 5% 1 2%

Increased productivity 2 3% 11 18% 24 40% 18 30% 5 8% 0 0%

Increased confidence in the firm's quality 0 0% 2 3% 13 22% 30 50% 15 25% 0 0%

Environmental improvements 5 8% 12 20% 16 27% 22 37% 5 8% 0 0%

Increased on-time deliveries 2 3% 5 8% 20 33% 24 40% 9 15% 0 0%

Increase in customer satisfaction 0 0% 2 3% 15 25% 29 48% 13 22% 1 2%

Increase in market share 7 12% 8 13% 23 38% 14 23% 6 10% 2 3%

Maintenance / increase in net profit 8 13% 15 25% 24 40% 11 18% 1 2% 1 2%

Improvements of the definition and

standardization of work procedures

0 0% 3 5% 2 3% 34 57% 21 35% 0 0%

Improvement of the worker´s morale 1 2% 5 8% 24 40% 23 38% 7 12% 0 0%

Improved relations with authorities 14 23% 13 22% 18 30% 13 22% 1 2% 1 2%

Improved relations with the community 10 17% 14 23% 21 35% 11 18% 3 5% 1 2%

Improvement of the firm's image 0 0% 0 0% 10 17% 30 50% 19 32% 1 2%

Figure 4 reveals that the majority of firms in our sample found that the main benefits of certification

translated into increased confidence in the firms’ quality; improvement of the definition and

standardization of work procedures and improvement of the firm’s image.

21

Figure 4 - Benefits of Certification – Substantial benefits/very substantial benefits

Maintenance/increase in net profit and improved relations with authorities and the community were

identified as providing the least benefits to firms that underwent the certification process, as shown

below on figure 5.

Figure 5 – Benefits of Certification – no benefits/few benefits

Some of the firms did not respond to some of the questions.

50%57%

50%

25%

35% 32%

0%

10%

20%

30%

40%

50%

60%

SubstantialBenefits

Verysubstantialbenefits

13%

23%

17%

25%

22%23%

0%

5%

10%

15%

20%

25%

30%

Maintenance/increaseinnet

profit

Improvedrelationswithauthorities

Improvedrelationswiththe

community

Nobenefits

Fewbenefits

22

According to figure 6, we can see the length of time that takes to implement the ISO 9000

Certification.

Figure 6 - Length of time to implement the ISO 9000 Certification

From the above graphs, figure 6, we see that most firms in our sample (85%) do not require much

time (2 years or less) to implement the ISO 9000 certification; only less than a quarter of the firms

took less than one year.


The next table represents the benefits of certification.

Table 6 – Competition

Strongly

disagree Disagree

Neither

agrees nor

disagrees Agree

Strongly

agree

Did not

respond

n % n % n % n % n % n %

In our business customers are loyal,

rarely change for new businesses or

competitors

12 20% 17 28% 18 30% 12 20% 1 2% 0 0%

In our business the competition is

mainly by price and not by

differentiation of product or service

2 3% 7 12% 20 33% 20 33% 10 17% 1 2%

10;(17%)

41;(68%)

3;(5%)2;(4%)

2;(3%) 2;(3%)

Lessthan1year

Between1and2years

Between2and3years

Between3and4years

Morethan4years

Didnotrespond

23

In our business the competition is

extremely intense compared to other

sectors

1 2% 7 12% 19 32% 23 38% 10 17% 0 0%

In our business, firms promote

(advertise) strongly compared with

other sectors

12 20% 27 45% 19 32% 1 2% 0 0% 1 2%

The demand in our business has been

growing rapidly over the last 3 years

23 38% 20 33% 14 23% 2 3% 0 0% 1 2%

Innovation and R & D is more common

in our activity than in most activities

10 17% 23 38% 17 28% 7 12% 1 2% 2 3%

In the past 3 years our business has

been more profitable than other

activities

27 45% 21 35% 11 18% 0 0% 0 0% 1 2%

We have a serious problem of

overcapacity in our activity

5 8% 22 37% 14 23% 11 18% 6 10% 2 3%

Our activity is still in the early growth 28 47% 23 38% 5 8% 0 0% 0 0% 4 7%

Our activity is characterized as a high-

tech activity

12 20% 21 35% 21 35% 3 5% 1 2% 2 3%

According to figure 7, one third of the firms in our sample agree that competition is mainly by price

and not by differentiation of product or service and competition is extremely intense compared to

other sectors.

Figure 7 – Competition - Agree

Firms disagree that the demand in their business has been growing rapidly over the last 3 years.

33%

38%

30%31%32%33%34%35%36%37%38%39%

Inourbusinessthecompetitionismainlybypriceandnotbydifferentiationofproductor

service

Inourbusinessthecompetitionisextremelyintensecompared

toothersectors

Agree

24

80% of firms do not agree that in the past 3 years their business has been more profitable than other

activities, as shown on figure 8.

85% of firms do not feel that the fact that their activity is still in early growth is an important factor for

competition.

Figure 8 – Competition – strongly disagree/disagree

Some of the firms did not respond some of the questions.

The implication for customers can be seen in the below graphs.

Figure 9 - Implication for customers

38%45% 47%

33% 35%38%

0%5%10%15%20%25%30%35%40%45%50%

Thedemandinourbusinesshasbeengrowingrapidlyoverthelast3years

Inthepast3yearsour

businesshasbeenmore

profitablethanotheractivities

Ouractivityisstillintheearlygrowth

Stronglydisagree

Disagree

8% 7%

30%

48%

7%0%2%

7%

20%

53%

15%

3%

0%

10%

20%

30%

40%

50%

60%

Therewasanincreaseincontactsbetweencompanypersonnelandcustomers

Activelyseekourcustomersinthedesignofproductsand/orservices

25

From the above graphs, figure 9, I concluded that most firms in our sample feel that quality

improvement, business benefits, mobilizing employees’ knowledge and business image were

important or extremely important factors to implement certification.

Benefits obtained by other certified firms, improved relations with authorities and the community were

generally identified as unimportant reasons to implement the certification process by roughly one-

third of the firms in our sample.


The following pie chart represents benchmarking and its implementation.

Figure 10 - Benchmarking

As can be seen on figure 10, almost half of the firms have not implemented the internal program of

competitive benchmarking, approximately a quarter of the firms have partially implemented it and

about half a quarter as barely implemented it. Few firms in our sample had almost or fully

implemented the certification process. Some of the firms did not respond to some of the questions.

The below table represents empowerment and its implementation.

27;(45%)

9;(15%)

17;(28%)

3;(5%) 2;(4%) 2;(3%)

notimplemented

barelyimplemented

partiallyimplemented

almostimplemented

fullyimplemented

Didnotrespond

26

Table 7 – Empowerment

not

implemented

barely

implemented

partially

implemented

almost

implemented

fully

implemented

n % n % n % n % n %

Employee involvement in

planning and design tasks was

increased

4 7% 4 7% 23 38% 26 43% 3 5%

We have a very active system

of employee suggestions

5 8% 13 22% 24 40% 13 22% 5 8%

The autonomy of employees to

make decisions was increased

4 7% 11 18% 30 50% 13 22% 2 3%

In the below graph, figure 11, we can see that 40% of the firms have partially implemented a very

active system of employee suggestions and half of the firms increased the autonomy of employees

to make decisions.

The majority of firms (81%) increased the employee involvement in planning and design tasks.

Figure 11 – Empowerment

Zero defects mentality can be found in the below table.

Table 8 - Zero defects mentality

38% 40%

50%43%

0%

10%

20%

30%

40%

50%

60%

Employeeinvolvementinplanningand

designtaskswasincreased

Wehaveaveryactivesystemof

employeesuggestions

Theautonomyofemployeestomakedecisionswasincreased


almostimplemented

27

not

implemented

barely

implemented

partially

implemented

almost

implemented

fully

implemented

Did not

respond

n % n % n % n % n % n %

We have a commitment to a

goal of zero defects

7 12% 3 5% 19 32% 19 32% 10 17% 2 3%

We have a program of

continuous reduction of

defects and failures

2 3% 3 5% 17 28% 27 45% 11 18% 0 0%

We have a plan to

dramatically reduce the

reprocessing

4 7% 7 12% 21 35% 18 30% 8 13% 2 3%

The majority of the firms (64%) have a commitment to a goal of zero defects partially and almost

implemented as seen in figure 12.

About three quarters of the firms (73%) have a program of continuous reduction of defects and

failures partially and almost implemented.

65% of the firms have a plan partially and almost implemented to dramatically reduce the

reprocessing. These results can be seen below.

Figure 12 - Zero defects mentality

3% of the firms did not respond the first and third questions.

The following graphs depict the Quality Management System.

Table 9 - Incoming of the Quality Management System, regarding the way Quality program has

impacted and influenced the results of the firm.

32%28%

35%32%

45%

30%

0%5%10%15%20%25%30%35%40%45%50%

Wehaveacommitmenttoagoalofzero

defects

Wehaveaprogramofcontinuousreductionofdefectsandfailures

Wehaveaplantodramaticallyreducethereprocessing


almostimplemented

28

Strongly

disagree Disagree

Neither

agrees nor

disagrees Agree

Strongly

agree

n % n % n % n % n %

Our quality program has increased our

productivity significantly

1 2% 6 10% 33 55% 20 33% 0 0%

Our quality program has contributed

dramatically to improve our

competitive position

1 2% 7 12% 22 37% 27 45% 3 5%

Our quality program has increased

significantly our profitability

1 2% 11 18% 33 55% 13 22% 2 3%

Our quality program influenced

significantly the increase of our sales

2 3% 11 18% 32 53% 14 23% 1 2%

Our quality program has contributed

significantly to the improvement of our

overall performance

0 0% 6 10% 22 37% 27 45% 5 8%

In general, it would have been better

without the quality program

39 65% 13 22% 7 12% 1 2% 0 0%

As we can see in the below graph, figure 13, almost half of the firms agreed that the quality program

has contributed dramatically to improve their competitive position and the quality program has

contributed significantly to the improvement of their overall performance and about one third neither

agreed nor disagreed.

Half of the firms neither agree nor disagree that the quality program has increased their productivity

significantly, their profitability and has influenced significantly the enhance of their sales.

29

Figure 13 - Incoming of the Quality Management System, regarding the way Quality program has impacted and influenced the results of the firm – neither agrees nor disagrees/agrees

According to the figure 14, the vast majority of the firms in our sample (87%) as can be seen in the

below graph, did not feel that they were better off without the quality program in terms of improving

the firm’s results.

Figure 14 – Firms did not feel that they were better off without the quality program in terms of improving the firm’s results

Some of the firms did not respond some of the questions in questionnaire.

55%

37%

55% 53%

37%45% 45%

0%

10%

20%

30%

40%

50%

60%

Ourqualityprogram

hasincreasedourproductivity…

Ourqualityprogram

hascontributeddram

aticallyto…

Ourqualityprogram

hasincreased

significantlyour…

Ourqualityprogram

influenced

significantlythe…

Ourqualityprogram

hascontributed

significantlytothe…

Neitheragreesnordisagrees

Agree

65%

22%

12%

2%0% Stronglydisagree

Disagree

Neitheragreesnordisagrees

Agree

Stronglyagree

30

Table 10 - Culture

Below you will find a number of attributes that describe why firms undertake TQM measures in

practice or pursue / seek quality.

We asked to divide 100 points among the 24 descriptions based on the importance or emphasis that

the firm places in practice.

Attributes

1 Meet customer expectations

2 Prevent errors

3 Reduce costs by failures / malfunctions / waste

4 Inspect and detect errors

5 Respond quickly and appropriately to customer complaints

6 Improve current levels of performance

7 Projecting correctly from the beginning

8 Surprise and delight the customer

9

To focus on the management of suppliers and customers as well

as in processes

10 Reduce customer dissatisfaction

11 To focus on "process" and the causes of errors

12 Anticipate customer expectations

13 Correct errors

14 To focus on Client’s "needs"

15 Zero defects

16 To focus on "production" (products)

17 Helping customers in order to avoid future problems

18 Avoid inconvenience to customers

19 Create new alternatives of doing things

20 To focus on Customer’s "preferences"

21 "Create" customer preferences

22 Review up on things well done

23 Obtain customer preferences in advance and follow them

24 Compensate customers beyond what they expected

This table is based on 24 important attributes that firms rely to implement quality. To construct this

table we relied on attributes which received the highest rate, taking into account the 100 points they

had to distribute among several attributes.

The points assigned to each attribute were added. With the data obtained, we organized it in

descending order, with the most valued attributes on the top of the table. The table was numbered

from most important to least important.

31

After all data were organized, we analyzed the resulting graphic.

Figure 15 - Culture

According to figure 15, the majority of the firms in our sample undertake TQM measures for quality

purposes to meet customer expectations and prevent errors.

Cost reductions, inspection/detection of errors, quick and appropriate response to customer

complaints and improvement of current levels of performance were also identified as important

factors to undertake TQM measures.

Obtaining customer preferences in advance and compensation customers beyond what they

expected were identified as the least important factors.

4.2. Results from Interviews

In order to complete the above survey, we also made/sent a questionnaire to the 5 firms, to obtain

more information.

In the textile world, the main reason that made the clients look for other markets was because of the

price. In countries like Bangladesh, China, India, Vietnam, clients find that the prices are lower and

so are the raw materials. But on the other hand, these countries manage to have such low prices

because they are not concerned with environmental and social demands and they also have state

supports.

As prices in Portugal are higher, clients demand many tests in order to compensate the money that

they paid. The new markets that are emerging are offering good prices and their products present

Meetcustomer

expe

ctations

Preven

terrors

Redu

ceco

stsb

yfailures

/malfunctio

ns/waste

Inspectand

detect

errors

Respon

dqu

icklya

nd

approp

riatelyto

custom

erco

mplaints

Improvecurren

tlevels

ofperform

ance

Geta

dvancecu

stom

er

preferen

cesa

ndfo

llow

them

Compe

nsatecustom

ers

beyond

whate

xpected

32

some quality, which means that clients will not think twice. Another aspect that is very important and

helped the clients search for other countries was because of the loss of geographic barriers.

Portuguese people are very submissive and cease to control the process.

Some aspects that make clients come back to Portuguese textile firms are quality, punctuality,

creativity when it comes to giving solutions and suggesting interesting new products.

The majority of the clients that once left our country did not come back. The few who came back

were because the experience they had with other countries did not come out as they wished and the

product was not as they were expecting too.

But the fact that the clients came back it does not necessary mean that it is good because their return

rouse less stability, less loyalty, many demands in order to achieve the desired price.

The ones that are still in Portugal were the ones that never left our country. The clients are here but

the orders are fewer amounts and the types of garments too. They still continue here because they

know that Portugal accepts all types of orders when it concerns quantities.

Orders with less quantities lead to higher costs with the management of processes, more errors and

more technical human resources.

Some new clients come to Portugal to visit our firms, to see how we work, our prices, our quality and

to study our market.

Quality is very important because if Portugal did not bet on quality, the clients would never return to

our country. The lack of quality leads to the decrease of sales. That is one of the factors that make

our clients see that our product has quality and the sales are good because of that.

During the time that the clients look for new markets, Portuguese firms took advantage of improving

and optimizing their resources.

The clients are returning but as all know, the big orders are not coming back. We have to adapt our

firms and have a versatile structure to be prepared to receive them and to guarantee that our

helpdesk is improved. Made is Portugal is a guarantee of quality unlike the image of the past.

In order to survive the crises, the satisfaction of the final client is very important. Our firms need to

study very well all markets, need to know which products that the clients are looking for, need to be

creative when it comes to the design of the garments, bet on innovation, be concerned with the

product’s image and its versatility. If we take into account these factors, we will guarantee our space.

Without quality and without punctuality, clients seek for better conditions in other countries.

Many firms in Portugal work for clients that represent very well known brands and quality is very

important to assure that it creates more value, more margins, so that it justifies their stay.

The work places are very important in a firm because they are responsible for quality. If they do not

work properly, quality will not exist and neither will their work place. More and more, workers know it

is like that.

33

Workers have training in order to sensitize them with this issue; they receive information and are

taught to deal correctly with the client’s complaints, customer service, which are the firm’s main goals

and why the client is so important.

Clients like the loyalty felt by our firms because they like to create roots, feel well with the ones they

work with and feel that it is not only because of the money.

A very important aspect that happens in Portugal and does not happen with the majority of the

countries is that our firms trust the clients based on the prestige and feedback collected initially and

payments are made 30 to 60 days after the order is delivered. This does not happen in the other

countries. They have to pay as they place the order.

Quality and the QMS are two important tools that if they are used properly; they are two great

weapons that we can use in our defense.

The QMS well implemented is an instrument that can manage everything in a firm (human resources,

behaviors …), involving everybody with the firm, with the client and will the society.

Workers are an important link in the firm´s performance and if all perform their functions properly,

this will be reflected throughout the firm.

34

5. DISCUSSION

The main objective of this dissertation is to work a database that refers to the textile sector in Minho

which allows us to evaluate the impact that quality can cause on the textile firms from Minho, why

some firms survived and others did not survive.


knowledge and business image were important and that competition is very intense and is mainly by

price and not by differentiation of product or service.

The quality program has contributed to improve their competitive position and the improvement of

their overall performance. The majority of the firms confirm that were better with the quality program

in terms of improving the firm’s results.

The greater part of the firms in our sample undertake TQM measures for quality purposes to meet

customer expectations and prevent errors.

Quality is very important because the lack of it would lead out the clients and they would never return

to our country. The lack of quality leads to the decrease of sales. It is very important to assure that it

creates more value, more margins, so that it justifies their stay. Quality and the QMS are two

important tools.

From the data collected through the questionnaires administered, we can conclude that firms have

similar views regarding quality, related interventions and its importance in the Portuguese textile

sector. We can also conclude that all think alike and have the same opinion when it comes to the

importance of quality in Portugal, namely in the textile sector.

Although quality is the most important factor, there are other aspects that we must have in mind that

clients also consider important, such as, good prices, punctuality, creativity, responsibility and loyalty.

Our Portuguese businessmen think the same way that owners of textile firms of UK do. They consider

quality an important tool to survive nowadays in the textile sector but besides that, they also think

that we must follow all the changes that happen in the market in order to continue competitive.

Despite all this concern in producing with quality, some UK firms have reduced their manufacturing

capacity and transferred it to countries that produce with lower prices, such as Eastern Europe, the

African continent and the Asian continent. With lower prices the profit margins enlarge.

Spanish businessmen think alike when it comes to the importance of quality in the textile industry.

5.1. Strengths

35

We choose the Minho region because the majority of the textile industrial is located there.

This study will help others to understand the actual situation of the textile sector in Portugal, namely,

the Minho region, as it includes results of a sample of 60 firms and the importance of Quality.

5.2. Limitations

One of the limitations is that we only focused on the Minho region and therefore our findings may not

be applicable to the whole of Portugal. For example, there are a considerable number of textile firms

in the Covilhã region.

We can also consider a limitation the fact that we do not know specifically where each firm is situated,

for example, if they are from the north or south of the Minho region.

Another found limitation was the delayed response of some firms that made the data collection take

longer.

The size of the firms was another limitation. The conclusions that were taken may be influenced by

its size, as we have a large range of workers.

6. CONCLUDING REMARKS

36

After a bibliographical analysis of the most widely used management systems, the following

conclusions were reached:

Of all firms surveyed, the quality is certainly very important for its survival. From the other selected

papers, which demonstrate the reality in other countries, it is undoubtedly well-known that this

concern is in general, to all firms.

The main results of our study shows that the majority of the firms in our sample undertake TQM

measures for quality purposes to meet customer expectations and prevent errors.

Most firms have chosen to be certificated because they felt that quality improvement, business

benefits, mobilizing employees’ knowledge and business image were important factors.

The majority of firms in our sample found that the main benefits of certification translated into

increased confidence in the firms’ quality; improvement of the definition and standardization of work

procedures and improvement of the firm’s image.

Quality consolidated because the Portuguese textile industries produce products with quality unlike

what happens in the Chinese textile industries.

Small orders or orders deemed urgent are produced in Portugal since the Chinese do not accept

them. Portuguese industries accept these situations to get more orders.

Another relevant situation is the salary paid to the workers. Chinese can produce at a lower price

also because of the salaries that are much lower, not to mention the existence of child labor.

Portuguese firms respect all proprieties and trademarks of all clients and products while Chinese

devalue it. Because of this China may have low costs but presents more losses.

Portuguese firms may have relocated their production to be cheaper but still fulfill all properties.

7. REFERENCES

37

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APPENDIXES

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APPENDIX 1 – QUESTIONNAIRE

1- Is your firm multinational?

2 - Reasons to implement certification.

43

Mark with an X, the importance of each of the following motivations for the decision to certify according to ISO 9000.

Without any importance

Not important

With some importance

Important Extremely important

Did not respond

n % n % n % n % n % n % Cost reducing measures

Quality improvement

Business Benefits

Pressure from customers

Numerous certificated competitors

Benefits achieved by other certified firms

Avoid possible obstacles to exportation

Mobilizing employees’ knowledge

Relations with authorities

Relations with the community

Business Image

3- Benefits of Certification: Indicate with an X, the benefits obtained after certification according to ISO 9000 in each of the following categories.

44

No

benefits Few

benefits

Moderate Benefits

Substantial Benefits

Very substantial

benefits Did not respond

Reduction of production costs

Increased productivity

Increased confidence in the firm's quality

Environmental improvements

Increased on-time deliveries

Increase in customer satisfaction

Increase in market share

Maintenance / increase in net profit

Improvements of the definition and standardization of work procedures

Improvement of the worker´s morale

Improved relations with authorities

Improved relations with the community

Improvement of the firm's image

4-Length of time to implement the ISO 9000 Certification Mark with an X, the time that took the firm to decide to implement the ISO 9000 till the certification.

Less than 1

year Between 1 and 2 years

Between 2 and 3 years

Between 3 and 4 years

More than 4 years

Length of time to implement the ISO 9000 Certification

5 – Competition Tick the best answer for each question on a scale of 1 to 5 (1 = strongly disagree, 5 = strongly agree)

45

Strongly disagree Disagree

Neither agrees nor disagrees Agree

Strongly agree

Did not respond

n % n % n % n % n % n % In our business customers are loyal, rarely change for new businesses or competitors

In our business the competition is mainly by price and not by differentiation of product or service

In our business the competition is extremely intense compared to other sectors

In our business, firms promote (advertise) strongly compared with other sectors

The demand in our business has been growing rapidly over the last 3 years

Innovation and R & D is more common in our activity than in most activities

In the past 3 years our business has been more profitable than other activities

We have a serious problem of overcapacity in our activity

Our activity is still in the early growth

Our activity is characterized as a high-tech activity

6-Implication for customers

Not implemented

1

2

3

4

Fully implemented

5 There was an increase in contacts between firm Personnel and customers

Actively seek our customers in the design of products and/or services

7- Benchmarking

Not implemented

Fully implemented

46

1 2 3 4 5 We have an internal program of competitive benchmarking

8 - Empowerment

not

implemented barely

implemented partially

implemented almost

implemented fully

implemented n % n % n % n % n % Employee involvement in planning and design tasks was increased

We have a very active system of employee suggestions

The autonomy of employees to make decisions was increased

9- Zero defects mentality

not

implemented barely

implemented partially

implemented almost

implemented fully

implemented Did not respond

We have a commitment to a goal of zero defects

We have a program of continuous reduction of defects and failures

We have a plan to dramatically reduce the reprocessing

10- Incoming of the Quality Management System. Tick the best answer using a scale of 1 to 5 (1 = strongly disagree, 5 = strongly agree) regarding the way your Quality program has impacted and influenced the results of your firm.

47

Strongly disagree Disagree

Neither agrees nor disagrees Agree

Strongly agree

n % n % n % n % n %

Our quality program has increased our productivity significantly

Our quality program has contributed dramatically to improve our competitive position

Our quality program has increased significantly our profitability

Our quality program influenced significantly the increase of our sales

Our quality program has contributed significantly to the improvement of our overall performance

In general, it would have been better without the quality program

11- Culture Below you will find a number of attributes that collect usual descriptions of why firms undertake TQM measures in practice or pursue / seek quality. We ask you to divide 100 points among the 24 descriptions based on the importance or emphasis the firm places in practice. It is not necessary to assign points to all descriptions, only those that truly reflect an important point in order to act in your firm, or over which supports your deployment strategy of the Quality Management System. What is crucial is that, in the end, the sum of all the points by itself is marked 100.

1 a Inspecionar e detectar erros 1 b Prevenir erros 1 c Melhorar os níveis actuais de desempenho 2 a Reduzir os custos por falhas/ avarias/ desperdício 2 b Zero defeitos 2 c Criar novas alternativas de fazer as coisas 3 a Corrigir erros 3 b Projectar correctamente desde o princípio 3 c Rever-se nas coisas bem feitas 4 a Centrarmo-nos na “produção” (produtos) 4 b Centrarmo-nos nos “processos” e nas causas de erros 4 c Centrarmo-nos na gestão de fornecedores e clientes assim como nos

processos

5 a Evitar incómodos aos clientes 5 b Satisfazer as expectativas do cliente 5 c Surpreender e deliciar o cliente 6 a Responder rápida e adequadamente às reclamações dos clientes 6 b Ajudar os clientes evitando problemas futuros 6 c Indemnizar e compensar os clientes para além do que esperavam 7 a Reduzir a insatisfação do cliente 7 b Obter antecipadamente as preferências do cliente e segui-las 7 c Anteciparmos as expectativas do cliente

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8 a Centrarmo-nos nas “necessidades” que nos pede o cliente 8 b Centrarmo-nos nas “preferências” do cliente 8 c “Criarmos” as preferências do cliente

49

APPENDIX 2 – INTERVIEW

1 - There were critical factors in the consolidation of firms in the textile sector. In your opinion, why

did some firms / clients leave Portugal?

2 - Why did some firms return later?

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3 - How did quality contribute to the return of some important clients?

4 – How did quality contribute for textile firms in the Minho region survive the crisis?

Qual o contributo da qualidade para as empresas têxteis do Minho conseguirem sobreviver à crise?

5- How did quality contribute to the maintenance of jobs in the textile firms in the Minho region?

the importance of quality in the consolidation of textile firms in minho

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